Mid-Afternoon Market Update: Dow Jumps 170 Points; Bed Bath & Beyond Shares Rise On Upbeat Results

Toward the end of trading Wednesday, the Dow traded up 1 percent to 17,226.56 while the NASDAQ surged 1 percent to 4,553.96. The S&P also rose, gaining 0.82 percent to 1,999.06.

Leading and Lagging Sectors

In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 1.47 percent. Top gainers in the sector included Acorda Therapeutics ACOR, up 27.7 percent, and BioCryst Pharmaceuticals BCRX, up 10 percent.

Utilities shares rose by just 0.16 percent on Wednesday. Top losers in the sector included Companhia Energética de Minas Gerais CIG, down 3 percent, and Empresa Distribuidora y Comercializadora Norte S.A. EDN, off 2.3 percent.

Top Headline

KB Home KBH reported weaker-than-expected fiscal third-quarter results.

The Los Angeles, California-based company posted quarterly earnings of $28.4 million, or $0.28 per share, versus $27.3 million, or $0.30 per share, in the year-ago quarter.

Its revenue climbed to $589.2 million from $549 million. However, analysts were expecting earnings of $0.40 per share on revenue of $646.76 million.

Equities Trading UP

Merrimack Pharmaceuticals MACK shares shot up 3.48 percent to $7.44 on licensing deal with Baxter International BAX.

Shares of Acorda Therapeutics ACOR got a boost, shooting up 27.29 percent to $37.36 after the company announced its plans to acquire Civitas Therapeutics.

Bed Bath & Beyond BBBY shares were also up, gaining 7.27 percent to $67.25 after the company reported stronger-than-expected second-quarter results and issued a forecast slightly ahead of the estimates.

Equities Trading DOWN

Shares of GrafTech International GTI were down 31.32 percent to $5.00 after the company lowered its FY14 forecast and announced several executive management changes.

KB Home KBH shares tumbled 5.45 percent to $16.05 after the company reported weaker-than-expected fiscal third-quarter results.

Egalet EGLT was down, falling 30.18 percent to $6.50 after the company announced an update on clinical development plan for abuse-deterrent morphine Egalet-001.

Commodities

In commodity news, oil traded up 1.71 percent to $93.13, while gold traded down 0.34 percent to $1,217.90.

Silver traded down 0.47 percent Wednesday to $17.70, while copper rose 0.61 percent to $3.05.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.72 percent, the Spanish Ibex Index rose 0.51 percent, while Italy’s FTSE MIB Index surged 1.67 percent. Meanwhile, the German DAX gained 0.70 percent and the French CAC 40 climbed 1.25 percent while UK shares rose 0.45 percent.

Economics

The MBA reported that its index of mortgage application activity declined 4.10% in the week ended September 19.

Sales of new homes rose 18% to an annual rate of 504,000 in August. However, economists were projecting a sales rate of 430,000 in the month.

US crude supplies slipped 4.3 million barrels in the week ended Sept. 19, according to the Energy Information Administration. However, analysts were expecting a rise of 1 million barrels. Gasoline supplies fell 400,000 barrels, while distillate supplies rose 800,000 barrels.